Firstrand Bank Limited v Schultz NO and Others (6355/2018) [2019] ZAFSHC 125 (25 July 2019)

Firstrand Bank Limited v Schultz NO and Others (6355/2018) [2019] ZAFSHC 125 (25 July 2019)

The court found that the plaintiff's summons did not state with sufficient particularity how the claims were formulated or how the total amounts owing were calculated. The amounts claimed were not easily ascertainable, and it was unclear whether additional interest was included or at what rate it was calculated. The National Credit Act did not apply to the credit facility, as the Trust is a juristic person and the principal debt exceeded the statutory threshold. Interest should be calculated in terms of the Prescribed Rate of Interest Act. The defendants demonstrated a bona fide defence, and the plaintiff failed to prove its claim was unanswerable. Accordingly, summary judgment was...

Citation
[2019] ZAFSHC 125
Parties
Plaintiff: Firstrand Bank Limited; Defendant: Hennie Schultz N.O; Defendant: Elsie Schultz N.O; Defendant: Leonard Johannes Oelof Truter N.O; Defendant: Hennie Schults
Court
Free State High Court, Bloemfontein
Jurisdiction
South Africa
Judgment Date
25 July 2019
Case Number
6355/2018
Procedural Posture
Summary Judgment Application / Opposed Application for Summary Judgment
Outcome
Application for summary judgment dismissed; defendants granted leave to defend.
Judges
MBHELE
Legal Topics
Summary Judgment, Liquidated Claim, Credit Facility Agreement, Suretyship, Interest Calculation, Pleading Particularity
Civil Procedure Banking and Finance Summary Judgment Liquidated Claim Credit Facility Agreement Suretyship Interest Calculation Pleading Particularity

Case Brief

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Parties

Firstrand Bank Limited

Plaintiff

Hennie Schultz N.O

Defendant

Elsie Schultz N.O

Defendant

Leonard Johannes Oelof Truter N.O

Defendant

Hennie Schults

Defendant

Procedural Posture

Summary Judgment Application / Opposed Application for Summary Judgment

Legal Issues

  1. 1 Whether the plaintiff's claims are for liquidated amounts in money as required for summary judgment.
  2. 2 Whether the causes of action were properly set out in the plaintiff's summons.
  3. 3 Whether the interest claimed was calculated in accordance with applicable law after repeal of the Usury Act.

Ratio Decidendi

The court found that the plaintiff's summons did not state with sufficient particularity how the claims were formulated or how the total amounts owing were calculated. The amounts claimed were not easily ascertainable, and it was unclear whether additional interest was included or at what rate it was calculated. The National Credit Act did not apply to the credit facility, as the Trust is a juristic person and the principal debt exceeded the statutory threshold. Interest should be calculated in terms of the Prescribed Rate of Interest Act. The defendants demonstrated a bona fide defence, and the plaintiff failed to prove its claim was unanswerable. Accordingly, summary judgment was...

Court Disposition

Application for summary judgment dismissed; defendants granted leave to defend.

Orders

  • The application for summary judgment in respect of both claims is dismissed.
  • The defendants are granted leave to defend.